Legal terms explained: Consequential loss

Some construction and engineering contracts, including FIDIC or LOGIC forms, may contain provisions precluding the recovery of consequential loss which has been caused by an actionable breach of contract, so as to limit the liability of the party who has committed that breach.

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Dark clouds over Panama

Guest editor Claire Tomlinson of Weightmans warns that even well drafted contracts might not always offer protection when the chips are really down on a major project where much is at stake, as the Panama Canal extension dispute highlights.

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State of play table 191

This table, prepared by Clyde & Co, provides a regularly amended guide to new and proposed legislation that will affect the construction industry. In addition to EU Directives and UK legislation, the table includes notes highlighting discussion papers issued by both government and non-government organisations, and commentary on the latest developments.

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PAS1192-3 – The use of Building Information Modelling

On 2 April 2014, the Department for Business, Innovation and Skills introduced PAS1192-3, detailing the use of Building Information Modelling (BIM) for the operational phase of a project.

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Reports from the courts: June 2014

Will Buckby and Jennifer Webb of Beale and Company analyse recent court decisions of most relevance to construction, including an appeal court ruling that shows that net contribution clauses will be upheld even in the event of the insolvency of one of the other parties.

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An effective way to avoid disaster

Our contracts monitor Michael Phipps, Principal of Thurston Consultants, examines the JCT Management Building Contract 2001 and finds confusion over when instructions issued become effective. Text changes are needed if potential disasters are to be avoided, he urges.

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Experimenting with insolvency

Pinsent Masons consultant Richard Davis says insolvency has had a major impact on the development of construction law and the relationship between the two has sometimes been problematic. Construction insolvency now deserves to be regarded as a separate category of law, he argues.

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‘Actionable damage’ and limitation

Duncan McCall QC of 4 Pump Court analyses the significance of a Technology and Construction Court decision that has implications for determining when a cause of action in negligence accrues.

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Best practice Horizon scanning cuts risks

Edward Moore of ResoLex Limited and Alastair Farr of Driver Trett argue that improving transparency of communication across project partnerships needs the adoption of horizon scanning processes to identify risks. Best practice guidance is available.

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The other side of the adjudication coin

Should the powers and jurisdiction of adjudicators be extended, as has been suggested by several commentators recently? Anthony Willis of Hill Dickinson thinks not, and warns about the growth of satellite litigation.

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